6 Crypto-Savings Accounts Compared (2021 Edition)

This year has become one of the greatest years for the crypto world. Massive adoption of Bitcoin, Ethereum, altcoins, and stablecoins has been impacting the crypto market. After China banned BTC, it tremendously fell to $48K and within a few days increased to $65K on 19th October.

One of the ways of earning on your assets is hodling, but it mostly fits for volatile coins such as BTC, since it may change its price within a few days. But there are ALTs, which do not volatile as much as BTC and ETH, and stables.

For those crypto-owners there are several ways of earning, but the safest and the most reliable one is crypto saving accounts.

Such service was introduced not that long ago, but until today it is getting more recognizable and used by crypto holders. Especially, since crypto saving accounts offer more APY than regular banks. The most common rate on a market is 8%, although there are some crypto lending platforms, which can offer higher rates on different terms and conditions.

If you hodl some crypto in your wallet, then this article may help you to get some profit from your owned coins and tokens.

Main Criteria That Define a Great Project

Before you could choose a platform, which will suit you the most, you have to keep in mind that the crypto platform market is very different and each has its unique selling point. In this article, we will consider such criteria: Types of Supported Assets, APY Rates, Pay Frequency, Security, Procedure Speed and Ease and Loyalty Programs & Rewards.

Types of Supported Assets

On a crypto market there are some types of crypto assets: BTC, ETH, Altcoins and Stablecoins. BTC was the first cryptocurrency, which has ever appeared on a market, and since then it has taken a leadership position. ETH was the second one, which was able to succeed. As for Altcoins, they are every coin that are not Bitcoin and Ethereum, such as Cordano, Shiba Inu token, Digibyte. The last but not the least is stablecoins. This type of asset is basically linked to the US dollar and other fiats. 

There are platforms which offer the most amount of assets:

1. Celsius offers 42 different types of assets to crypto deposits , including BTC, ETH, alts and stables;
2. Nexo supports a little less coins than Celsius, to be specific 24, although they expand their list with each day;
3. BlockFi accepts only 13, together with BTC, ETH and stables.

APY Rates

The annual percentage yield, or APY, is a rate of earned returns on an investment on crypto saving accounts, taking into account the effect of compound interest. It is calculated periodically and the amount is immediately added to the balance. Although, some lending platforms outhere still stick to the simple interest as BlockFi (8,25%) and CoinRabbit (8,25%) does.

Saving accounts that offer the best APY rates:

1. YouHodler seems to have the best interest rate on the market. The highest one is for stablecoins and equals 12%;
2. As for CoinRabbit, it offers 10% APY rate to earn interest with crypto deposits;
3. Crypto.com suggests 6% APY on their savings account, which may or may not be the best one, but it is competitive on a market.

Pay Frequency

The term Pay Frequency is used to describe how often the payment will be made. It can be called as regularity of payment or recurrence of payment. There are different options for frequency starting from weekly, bi-weekly, semi-weekly, monthly, ending with an option of companies which choose it on their own. When it comes to crypto lending platforms, it depends on their terms and conditions.

1. CoinRabbit pays to their clients daily. Due to the fact that you can withdraw your crypto assets anytime you want, they will be able to return your funds, taking into account accrued interest
2. Nexo has the same terms as CoinRabbit does. Unlike them, Nexo Network cannot make a return within a few minutes, it might take some time. But at the end, they do charge interest every day.
3. Celsius is one of the platforms which pays weekly interest. Payment is sent every Monday.

Security

If you lose your phone, you will lose all your money. Sometimes even multi-factor authentication does not guarantee safety. Unlike banks, crypto platforms have built a different level of security. The security of a crypto saving account is defined by all the layers, control systems, external and internal solutions. 

These crypto lending projects deserve to be called the safest in the field:

1. Nexo is undeniably the most secure crypto lending venture nowadays. With no doubts it is the excellent vicinity to have confidence with the impervious and safely. BitGo insurance, bank-grade storage, regulatory compliance and AML (Anti-Money Laundering) is solely a section of security measures they have carried out for the services;
2. Crypto.com holds 100% of personal cryptocurrencies in storage. Users’ fiat currencies are held in regulated custodian bank accounts. Transactions are constantly strictly controlled. All the measures they have carried out makes their provider one of the most impenetrable in the sphere as well;
3. CoinRabbit gives transparent and invulnerable services by risk control system and cold wallets. Risk Control System consists of four mechanisms of protection, including checks all the incoming transactions via its hash, executes all the additional and preliminary calculations and confirms all the economy to be correct, confirms the data and signs it, blocks all the system and automatically notifies core team members about an emergency accident to be solved.

Procedure Speed and Ease

Time is always important, since no one wants to wait, sitting in front of your computer or mobile phone, looking for a transaction or checking it every single hour. It might take hours to sign up, set up your personal information and get approval. 

Crypto projects that provide with the fastest procedure speed:

1. CoinRabbit is one of the fastest crypto earning projects. It takes under 15 minutes to make a deposit and start earning from your assets. The reason for this is acceptance of KYC (Know Your Customer), so you do not have to fill up all the information, which is usually required from other services;
2. BlockFi also has a relatively easy process. It usually takes less than 1 day to sign up and go through the KYC process;
3. Celsius is also quite simple to use, almost the same with BlockFi since everything there is one ecosystem. 

Loyalty Programs & Rewards

Loyalty Programs & Rewards at crypto lending platforms give some benefits to their clients like higher APY rate. Usually, it is a four-tier system, which extends benefits depending on the amount of platform tokens client holds across their saving accounts. Some may include in a loyalty program the portfolio balance, which usually include credit line and saving wallets, depending on a platform. Some platforms offer credit cards, which are under their platform, which let users have different benefits, for example: rewards on getting a coin.

1. Celsius also has a four-tier loyalty program, which consists of Bronze, Silver, Gold and Platinum tiers. Unlike Nexo, you have to own 5-10% CEL tokens to get the first level. To get a Platinum you have to store 25-100%;
2. CoinRabbit offers a limited-time promo for anyone who opens a stablecoin savings account until November 30. Each client will get 10% APY and a special FREE 25% earning bonus in $BTC, $XNO, $DGB, $XRP, $FIRO, $DOGE and $SHIB.
3. Nexo suggests to their clients a four-tier system, which includes Base, Silver, Gold and Platinum levels. Your tier depends on the amount of held NEXO tokens you have. To reach the Platinum level you have to compromise at Balance Portfolio 10% of their tokens; 
4. Gemini does not have a loyalty program, although it offers to get a MaterCards credit card, which gives rewards in crypto currencies, which are available on Gemini. Moreover, it offers a cashback up to 3% on dining, groceries and all other purchases. 

Conclusion

Nevertheless, crypto savings account is a relatively new service, the demand on it is growing rapidly. If you are looking for long-term crypto investments, then crypto savings accounts will be your best choice to earn any interest while you keep your assets safe on crypto lending platforms.